It has now been about a month since I posted a comment on the economy or economic condition on this Blog.  Mostly, that has to do with the fact that I don’t have an ego-need to post – and if I had commented on most of what has been going on I would have fallen into the typical ‘commentator trap’ of simply having repeated what I said before – albeit differently.

I am now posting because of today’s various disclosures (most recently moments ago ‘Lou Dobbs CCN show

at 7:00 p.m. Eastern time) that the banks who have received funds from the Bush Administration ‘Bail-Out Plan’ are not disclosing – at least so far – how those funds have been expended and hence used to further the ‘freeing-up of credit’ in the U.S.  The question asked by the commentator on Lou Dobbs’ show – Who is responsible for the current credit issues in the U.S. and hence the economic downturn now being experienced? – is in my view ridiculous, and importantly should not need to be asked.

I say this because I long ago concluded that as a generalization people don’t see things either simply or for what they are.  The answer to the ‘Lou Dobbs’ question is obvious.  In a Democracy Governments set the rules, Courts administer those rules, and citizens (read ‘entrepreneurs and Wall Streeters’) analyze those rules to see how they can be used to advantage.  That is the system!!  Anyone who thinks otherwise needs to give his or her head a shake.  It follows the economic problems that exist today – which in my view will not be solved anytime soon – rest squarely on the backs (in the context of the U.S.) on the current and prior U.S. Administration, and the U.S. Senators and Congressmen who appointed people such as Alan Greenspan and Henry Paulson, and passed legislation that enabled ‘Wall Streeters’ and others – acting within the Laws of the Land – to structure the deals and take the fees they did.  The blame squarely lies with Government, to think otherwise is in my view patently ridiculous.

Note:    I am not a ‘Wall Streeter’ and never have been, nor did I personally realize an advantage or disadvantage from the ‘variable rate mortgages’ and other financial vehicles developed and sold by those who invented and sold them.

The views expressed in this Post are those of the author. They are offered to readers for information and general guidance only. They are neither intended to, nor should be taken to, constitute economic or investment advice. See Legal Disclaimer.

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